An appraisal uses sale data from previous transactions. So, appraisals are inherently “backward looking”. In a buyers market, where prices are going down, the currently market price is likely to be lower than the appraisal.
When prices were going up, many buyers kept losing out to other buyers because they refuse to offer significantly more than the market price. Now, it’s the opposite. Many sellers are unable to sell because the refuse to price their houses significantly less than the appraisal.
Many sellers end up keep “chasing the market down” but never quite catch up to it even though they keep lowering their asking price.
Any experienced realtor will tell you that “It’s the buyers who set the price, NOT the seller”.
The only way to stop this cycle is to price your house significantly below market & let the buyers “tell you how much your house is worth”.
